Bell Mobility and its parent company, Bell Canada are facing a $100 million class action lawsuit that claims expiration dates on Bell’s prepaid wireless service are illegal.

Ontario’s Consumer Protection Act bans expiration dates from gift cards.  The Toronto law firm of Sack Goldblatt Mitchell LLP alleges that prepaid wireless services, often topped up with prepaid cards, should be treated just like gift cards and not subject to expiration dates that wipe out available balances.

The suit was filed on behalf of Celia Sankar of Elliot Lake, Ont.

Sankar is founder of the DiversityCanada Foundation, a non-profit group that fights for diversity, inclusion and harmony among Canadians. Sankar had her Bell Mobility prepaid balances wiped out on two occasions because she did not use her available balance or “top-up” her account with additional funds within the time window specified by Bell.

A $15 Bell Mobility prepaid top-up card expires in 30 days. A $25 top-up card expires in 60 days. Customers can buy a $100 card and avoid losing their balance for one year. Accounts with a $0 balance for 120 days will be terminated.

“Because the prepaid wireless service is the least expensive way to have a phone, and does not require a credit card or a bank account, it is often the only option for youth, new immigrants, workers on minimum wage, the unemployed, people on disability and seniors on fixed incomes,” Sankar said. “These are the people who can least afford to have their funds forfeited or to have their mobile services cut off.”

Bell declared the suit was without merit and intends to fight it.

If the case is certified as a class-action suit, Bell faces the prospect of defending itself against all Ontario residents who have used Bell’s prepaid services since May 4, 2010. Those brands include Bell Mobility, Solo Mobile, and Virgin Mobile Canada.